Switch On, Switch Off…

For S&P futures, 1205.50 has acted as a “switch,” with the upside “on” above that level and “off” below it.

Currently, we’re at 1200, off the lows of 1196.70. But with the downside pressure continuing — in part due to concerns over
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earnings rumors — the downside targets are again 1198 and 1196.

NASDAQ is trading at 1697, off the lows of 1688. This market has failed to make any sustained headway over 1720, which has added to the downside pressure.

IBM — obviously not in the NASDAQ — is casting a shadow of concern over the tech sector today.

Despite a strong pre-market trade and some optimism in the market early, these markets are having difficulty shaking off the downside.